Sported Governance pages

What is governance?

Basic governance requirements

Basic governance requirements

Lifecycle of a group

evolve

close

run

setup

Please review this course

Sported guides overview

Getting it right at the start

More on some common structures and status

This unit:

Governance

Charitable status

Introduction

Charitable Incorporated Organisation (CIO)

Group structure

Incorporation - what is it?

Board

Community Interest Company (CIC)

Governing documents

Do we need a legal structure?

CASC - Community Amateur Sports Club status

Legal matters

Company limited by guarantee

Summary

Unincorporated association

Quiz

More on legal structures

Please review this course

Sported guides overview

This unit:

Setting up

Governance

Introduction

Trustees

Group structure

Board

Responsibilities

Governing documents

Legal matters

Summary

Quiz

Please review this course

Sported guides overview

NCVO webinar on writing and amending your governing document

This unit:

Governance

Introduction

Group structure

Charities

Board

Governing documents

Companies

Do you know who is responsible for maintaining these documents within your organisation?

Legal matters

Summary

Quiz

Please review this course

Sported guides overview

For every organisation, whether a company or a charity, there are legal policies and requirements.

Which policies you need depends on lots of things including your legal structure and the activities you deliver.

This unit:

Governance

Introduction

The Charity Governance code is a useful tool to help small charities and other not for profit organisations in England and Wales

Group structure

Regional differences In the UK Charity law is devoved, but tax law is not. This paper has a lot more information, or contact Sported for more help on this.

Board

Governing documents

Legal matters

Summary

Insurance

Sported policy templates

Safeguarding policy

Quiz

Hop over to the Sported Hub for more on Safeguarding policies and how to get this right for your group

Joe Cartwright and Jude Toasland from the NSPCC Child protection in sport unit presented this webinar for Sported members

Take a look at this Charity Commission guide

Insurance

Your group will need to have insurance set up in order to operate safely.

Take a look at this guide on the Sported Hub.

This short presentation outlines why you need insurance

All companies, including CICs require two governance documents: The Memorandum of Association and the Articles of Association. These documents set out the rules and conditions of the CIC.

The Memorandum is a short document which confirms that the subscribers wish to form a company and agree to become a member of the company. If the company is limited by shares they agree to take at least one share in the company.

All companies, including CICs require two governance documents: The Memorandum of Association and the Articles of Association. These documents set out the rules and conditions of the CIC.

Asset lock

Dividend and interst cap

Directors' duties

Memorandum of Association

Reporting

Articles of Association

Rules

Download a template for Articles of Association

Required governance

You need a base level of govenerance to run a group safely. Sport England have developed some guidance you can look at, which outlines their level of Tier 1 governance.

Revised code for Sports Governance

Four key elements

• Democratic
• Transparent
• Representative
• Non profit

In this video, Sported's Paul Steel explains the four basic elements of good governance which funders look for. Click here to watch the full webinar.

Why you need a legal structure

To protect your committee members and insulate individuals from financial risk, you will need to incorporate your organisation. When you incorporate, you'll need to choose a legal structure.

Does this mean we need to register as a charity?

But what do they all mean?

No - not all community groups and beneficiary organisaitons are charities. There are other options which may suit your group better.

Take a look at the detailed information by clicking on each structure on the main page.

Watch the full webinar here

Community interest company

• members liability limited by guarantee
• can pay dividends and directors, but must benefit the wider community
• assets are locked in for community benefit
• cannot get charitable tax benefits, but can convert to a charity

For a more detailed view, look at this guide from Charity Excellence

A limited company structure for social enterprises with a focus on community benefit.

Office of the reguator of CICs

In this webinar, Sported's Paul Steel explains some of the most common legal structures.

Community Amateur Sports Club (CASC)

• lighter reporting responisbility compared to charities
• some tax benefits, e.g. can claim Gift Aid

• has conditions e.g. membership must be open to the whole community

• a CASC cannot also be a charity

Gov.uk guide on CASCs including tax infomration

England Rugby guidance on the pros and cons of becoming a CASC

This status allows grassroots sports clubs to benefit from favourable tax rates, including claiming Gift Aid.

Charity Commision guide to CASCs

Incorporated or unincorporated group?

This is the first question you must answer. If your group has come together and has no legal strucutre, is not registered as a company or charity, it is unincorporated. Incorporated or Unincorporated group? In this clip, Club Development Consultancy explain the pros and cons of incorporation

What is incorporation, and do you need it?

In this clip, Club Development Consultancy explain the pros and cons of incorporation

An unincorporated group is a collection of individuals who are legally liable for any debts the group incurrs. So if you don't want to expose your Committee members to personal risk then YES - you do need to incorporate.

Unincorporated association

• simple to set up - no reporting duties or restrictions
• no special tax benefits
• no separate legal status, so committee members could be personally liable for debts
• assets are held by individuals so have to be transferred if that person leaves

Read more in this article from Morton Fraser.

A group of individuals who have come together to run a club or organisation.

Trustee/Director responsibilities

The exact role and responsibilites will vary, depending on the structure of your group.Charities have a Board of Trustees.

• Trustees and Directors plan how the group will achieve its goals
• Take decisions and vote
• Work within the organisation's constitution
• Use their skills to benefit their community

Part of this role is to run and attend board meetings, where decisions about your organisation can be discussed and made.Sported volunteer consultant David Williams has some advice on running effective board meetings.

The Charity Commission have a guide to what is involved.Companies are subject to company law, and have a Board of Directors.

Guidance for non-charity companies

Charity Commission guide

Constitution

A Constitution is the Governing document of a charity, which legally, must be followed. It should include:

• what the charity is set up to do
• what it can do to carry out it's purpose
• who will run it
• rules around meetings and Trustees
• what happens if the chairty closes

Charity Commission: How to write your Governing Document guide

Watch the full webinar here

Charitable Incorporated Organisation

• members liability limited
• only needs to register with the Charity Commission
• not a company, so not subject to company law
• Foundation CIOs: decisions are made by Trustees
• Association CIOs: wider membership has a role in decision making

A legal structure for non-profits and charities offering a separate legal personality, limiting liability for members and trustees.

For a more detailed view, look at this guide from Walker Morris

Charity Commission - Setting up a new charity

Read more on what your governing document should contain with this advice from the NCVO

Charitable status

Registering as a charity is not a legal structure, so charities can be unincorporated.To have a separate legal status, a group still needs to choose a suitable structure. Becoming a Charitable Incorporated Organisation (CIO) may be suitable.

For a more on which charitable structure to choose, see this guide from the Charity Commission

If your organisation has charitable aims, you can register with the Charity Commission.

Trustees

skills and experience

roles and responsibilities

What skills do you need to help you run the activities/group (e.g. fundraising, marketing, safeguarding)? Check out this skills audit to help you work out what your organisation needs on its board

Start to define roles such as chair, treasurer, secretary, safeguarding officer Draw up a list of general and specific responsibilities Be open and honest with prospective Trustees, nobody likes to be misled on the level of time commitment.

safeguarding

conflicts of interest

representation

Consider the range of skills and types of people represented on your board. Do you have community links and youth representatives (if appropriate)? Try to create a diverse and representative group, not an echo chamber.

Think about how you will recruit people safely as part of your Safeguarding Policies and Procedures (e.g. obtaining references, checking certificates, background checks)

Try to avoid as much as possible! Minimise the amount of family members/ individuals with personal relationships Minimise conflicts of interests or duality of interests, and keep a record of any conflicts of interest

Company limited by guarantee

A company without shareholders or shares. Typically used by non-profits and charities, this type of company is controlled by guarantors (members), who guarantee a nominal sum of money to the company in the event of its becoming insolvent or winding up.

Lawbite have more details on the pros and cons of becoming a company ltd by guarantee.

Building your board

Ideally around 5-9 members, having an odd number on your board will avoid a deadlock when voting.

size

Are your Board members invested in your group? Passionate about the changes your organisation wants to make? Your board needs to share a vision.

passion

legal

Check out this video on the legal requirements for setting up a board of trustees

Think about the skills you'll need present. You can use this skills audit template to help balance your board's skill set.

skills

factsheet

Check out this factsheet from Action Together on setting up your board of Trustees/Directors